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Now on a divi yield at 9.6% if they stay with the 20p annual
Q1 22 metal prices provided a bonanza for CAML. Q1 23 prices are well down on that period, but the company is still making good money. They were paying out $40+m a year in debt repayments and interest, which they have also got now to play with. Big increase in wage costs, but the local currencies have moved in CAML's favour. They must have circa $90m in the bank today, all adding up to a very strange dividend decision.
I just bought some more at 234 and 236. I like this share, sold down some around 256 for profit. Held and now bought back. That brings my yield above 8% and happy with that with such a high risk market at the moment. Actual took my divi payment from
Dec plus some more and moved across
Pretty negative market reaction looks like 6-7% down. That’s wiped most of the divi!
I guess the view is the BoD are coasting. They either had to have more news on the acquisition front and/or return more to shareholders.
As they have repaid debt some of that cash should have come back to us irrespective of fcf model.
I guess they need to make their mind up here what they are doing and show the market.
Sp fall a tad of an overreaction though as the income is pretty solid and now you can get it cheaper. A good buy if you think metals are going up and especially if you believe the bull case for copper. Double especially if Ukraine gets resolved!
Usual caveats
Trek
Solid as usual, no surprises. I'm ok with divi level
What is disappointing is the amount of time it is taking to find acquisition. Think they have had same amount of site visits for the last 5 yrs. I truly think an acquisition is a 4th priority after production, H&S, Environment and Sustainability
The market will not like the cut in the final dividend. They should have tweaked their dividend policy. There is a time for being conservative, their balance sheet could more than afford to maintain or increase the 12p from last year.
It's in line with their self imposed % limit of fcf.
Yup looks good. Where do you think the sp should go to?
Solid set of numbers. Loads of cash, $60.6m in bank and fcf now at $89.7m ! 2 x 10p divi making 20p for year. Very disappointed as last years final was 12p
On hunt for suitable acquisitions. 17 nda’s in place and two sites visited. Obviously will pick only the best! Probably why haven’t increased divi.
Still getting 8.7% yield now and good exposure to any rerate in copper price.
Usual caveats
Trek
Very unlikely imo. May just run off copper assets back to shareholders over next 11 years and invest in Moldova.
Why not everyone gets more than money back!
Be interesting to see what’s next
Usual caveats
Trek
Of course in the meantime Caml might get bought.
I don't think CAML need to increase the dividend much. With lending for growth so expensive I would actually prefer less of a payout ratio. CAML has always run a safe ship on all factors they can control. We don't need to shoot the lights out. The cash could be held in money markets creating a small yield.
I wonder if we will get anything extra In divi tomorrow? We know the debt is gone, cash piling up and no announcement as yet on future investments. Will they divide out, have a pot for future assets and also some for shareholders in the meantime? If their pot has grown ally hard not to give something back unless they show confidence in future buys.
I’m thinking special divi
Been down pretty much all day on lots of buys. Someone offloading, treeshake or playing results. No idea but now it’s ticking up! Same pattern over at EcOR but nowhere near level if buying as here today!
We’ll find out Wednesday.
If they increase the divi to run return the mine cash to shareholders that’ll be great or an extended LoM will be great!
Not sure how the market would react to accretive intent unless it’s a gift!
Soon find out but well paid here to wait!
Usual caveats
Trek
I think this is easily going back to £2.60+ then anything extra will depend on the results. Good luck!
Anglo Asian are transitioning into a primary copper producer so gold price fluctuations will matter even less for AAZ shareholders in the not so distant future. That isn't to say the company are overvalued right now. They generate plenty of cash and have paid dividends for years however they are and will be investing substantial sums of capital in the next couple of years to increase copper production and so are a few years behind the curve compared to CAML.
A stronger copper player that has a better track record than Anglo Asian would be Taseko (TKO) which has it's copper producing mines located in North America. Whilst CAML are in a very comfortable position today and worth holding for the dividends this is more of a hedge on the copper price than a growth play.
With the bank situation *potentially* sorted impacting gold price, I would even consider selling some AAZ holding to buy CAML.
TrekMadone makes a good point about politics. That's the attraction of diversification of the majors but they have the risk. CAML is the only smaller company worth holding forever.
I held AAZ back when it was pence. Imo it’s run is over. I would avoid due to the politics an Azerbaijan it’s worse than where CAML are!
Usual caveats
Trek
Sp changing a lot on this stock
Yes as a small part of a balanced portfolio. But if they commit to a new project with a load interest rate of around 10% it better be extremely low cost. These two are the best miners on AIM IMHO and at today's price I would be buying CAML. I do own AAZ but its a small fraction of what I hold here and in GLEN and dwarfs strong buying of non-miners like LGEN or WENS etc...
its also into copper big time going forward, just wondered if we should buy it!!
Anglo Asian Mining is in gold and also net cash it looks a strong buy with the gold price.
However, CAML generates more cash, so much cash that we create a pile of cash as well as pay the dividend. I believe CAML is better financially to grow without expensive gearing with a very high-interest rate! This reduces the risk-reward profile and the aim of the game is not to lose money.
they also have a 19.8% share in libero in south America? seem to have hands in a few spaces, not sure what azerbaijn is like?